Household financial decision making: Qualitative research with couples

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Abbreviations and glossary of terms
Abbreviations and glossary 
of terms
Automatic enrolment 
Pension scheme enrolment technique whereby an employer 
automatically enrols eligible jobholders in the 
workplace 
pension scheme without the employees having to make a 
separate application for membership. Employees are able to 
opt out of the scheme if they prefer. 
Contract-based pension 
See 
Personal pension. 
DB 
Defined benefit 
Defined benefit scheme 
Occupational pension scheme specifying the benefits that are 
paid on retirement (e.g. a fraction of salary for each year of 
service). Also known as a ‘salary-related’ scheme. 
DC 
Defined contribution
Defined contribution scheme 
Occupational pension scheme where the amount of pension 
is determined by contributions paid into the scheme and 
investment returns. Also known as a ‘money purchase’ scheme.
DWP 
Department for Work and Pensions 
Independent Financial Adviser
An adviser, or firm of advisers, that is in a position to review 
all the available products and companies in the market as the 
basis for recommendations to clients. All IFAs are regulated 
directly by the Financial Services Authority. 
IFA 
Independent Financial Adviser
NI 
National Insurance
Occupational pension 
Pension scheme set up by an employer for the benefit of 
employees, with the employer generally making contributions 
to the scheme and meeting administrative costs. The scheme 
is provided via the employer, but takes the form of a trust 
arrangement and is legally separate from the employer. Types 
of occupational scheme include 
defined benefit, defined 
contribution and hybrid schemes. 
Personal pension 
A pension that is provided through a contract between 
an individual and a 
pension provider. The term generally 
comprises personal pensions, which are arranged by individual 
employees, and group personal pensions, access to which is 
facilitated by an employer.

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